PayPal Friends & Family listings. Why is this becoming so common?


I think most sellers now realize they are not going to have a taxable profit. 

The F&F listings at market price don't seem to sell. 

It seems like buyers demand around a 20% discount to take on the added risk of F&F. 

I'm really just curious to hear what buyers & sellers think of this practice.  

seanheis1

I base my statement on US Audiomart, where I moderated the forums, and this may not be representative of the broader market at all, and certainly does not take into account Craigslist and the like, but currently there are 11,000 active listings on USAM, that has ranged to over 24,000 at times. Assuming their data is correct, that is very low and much lower than the pandemic years.

So granted I may be using the wrong metric. What metric are you using?

“If F&F makes anyone uncomfortable it’s really simple, dont buy from those sellers requesting it. ”

I am curious, all those opposing F&F option, would you be willing to pay PayPal fee?

2 reasons plain & simple...
1:Sellers are already having to discount prices beyond absurd just to move their gear & are not willing to throw another 3.5% for PP G&S fees away on top of that...
2:Unscrupulous buyers are using PP's Buyer First protection to scam sellers by causing some minimal damage to products then claiming "Not As Advertised",forcing an even further discount on already rock bottom pricing...I have,in the last year,fought off 2 different POS buyers trying this because I photograph every sold product heavily,as well as final packaging & attach these pics to shipping confirmed emails to buyer before they go out..

I've bought and sold gear here and on AM for 35 years. The above example is always a huge fear. Thankfully its never happened to me. Although anything of great value I'm extremely careful on who i will sell too.

Question for all- I thought the IRS put on hold the demand for PP to disclose any transactions over 599.00,. or the issuing of a 1099. Is still the case ?

Any and all info on this would be greatly appreciated.

I'm not trying to hijack the thread...but feel this is relevant info regarding the OP original question.

Example to the above... If I buy a used amp that sold new for 5000 and I buy it for 2500. I then eventually sell it for 2000. If I get a 1099 for 2000...how would I prove a loss at any of the above example? I wouldn't have an documentation to support my loss based on second hand sales.